Leases

12 Months Ended

Dec. 31, 2022

7. Leases

Quantitative Lease Disclosures

We have operating and finance leases for our manufacturing facilities, warehouses, office space, automobiles, and certain equipment. Our leases have remaining lease terms of up to eleven years, some of which may include one or more five-year renewal options. We have not included any of the renewal options in our operating lease payments, as we concluded that it is not reasonably certain that we will exercise any of these renewal options. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term. Finance leases are not material.

The following tables provide quantitative disclosures related to our operating leases and includes all operating leases acquired from the date of the acquisition (in thousands):

Balance Sheet Information	December 31,
Assets	2022			2021
Operating lease right-of-use assets	$	49,838		$	40,469

Liabilities
Sundry payables and accrued expenses	$	10,763		$	10,544
Noncurrent operating lease liabilities		40,709			31,206
Total operating lease liabilities	$	51,472		$	41,750

Weighted Average Remaining Lease Term
Operating leases	7 Years			5.3 Years

Weighted Average Discount Rate
Operating leases		3.7	%		3	%

	Year Ended, December 31,
Expense and Cash Flow Information	2022		2021
Lease Expense
Operating lease expense (a)	$	11,411	$	10,051
Supplemental Cash Flow Information
Cash Paid for the amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,293	$	9,985
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases (b)	$	31,064	$	20,975

(a)

Excludes expenses of approximately $2.7 million and $2 million for the years ended December 31, 2022 and 2021, respectively, related to non-lease components such as maintenance, property taxes, etc., and operating lease expense for leases with an initial term of 12 months or less, which is not material.

(b)

Includes $21.6 million of right-of-use assets related to the lease modification and extension for our executive offices in Long Island City, New York during year ended December 31, 2022, and right-of-use assets obtained in business acquisitions of $0.4 million and $8.8 million during the years ended December 31, 2022 and 2021, respectively.

Minimum Lease Payments

At December 31, 2022, we are obligated to make minimum lease payments through 2033, under operating leases, which are as follows (in thousands):

2023	$	10,956
2024		9,770
2025		7,179
2026		6,268
2027		5,383
Thereafter		20,633
Total lease payments	$	60,189
Less: Interest		(8,717	)
Present value of lease liabilities	$	51,472